Why the Dicker Data (ASX:DDR) share price is powering 6% today

relived woman hugs computer

The Dicker Data Ltd (ASX: DDR) share price is rebounding today after losing 20% of its value since last Friday. This comes after the IT distributor ended last week on a disappointing note that spooked investors.

At the time of writing, Dicker Data shares are fetching for $13.45, up 5.82%.

What did Dicker Data announce?

According its last market update, Dicker Data revealed its chair and CEO David Dicker sold a portion of his shares.

Approximately 2.74 million Dicker Data shares were offloaded in an on-market trade at a price of $15.40 apiece on Friday. Mr Dicker advised the reason for selling his shares was to fund “personal projects”.

The transaction represented roughly 1.6% of Dicker Data’s share registry and reduced Mr Dicker’s entire holding to around 33.6%.

The news sent the Dicker Data share price plummeting from its all-time high of $16.60 to as low as $12.54 the following day.

However, it appears the worst is over and investors are viewing Dicker Data shares as a bargain.

The company released its FY21 interim results on August 26 highlighting growth across key metrics. The strong performance was underpinned by businesses pushing into the digital space following prolonged lockdowns caused by COVID-19.

Quick take on Dicker Data

Dicker Data is an Australian and New Zealand wholesaler and distributor of computer hardware, software and related products. Vendors include Hewett-Packard, Cisco, Toshiba, Lenovo, Microsoft, ASUS, and other major brands.

The company services approximately 5,000 retailers who, in turn, service multiple clients ranging from small and medium-sized enterprises to large corporate businesses.

Dicker Data share price snapshot

Over the past 12 months, Dicker Data shares have surged almost 80%, with year-to-date gains above 25%. Regardless of the recent drop, the company’s share price has been moving along on an upwards trajectory.

Dicker Data has a has a price-to-earnings (P/E) ratio of 37.41 and commands a market capitalisation of roughly $2.3 billion.

The post Why the Dicker Data (ASX:DDR) share price is powering 6% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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